UE 4 LTD

Executive Summary

UE 4 Ltd is a newly formed private limited company showing early-stage financial deficits with negative net assets and significant related party debt, which moderately elevates solvency and liquidity risks. The company demonstrates compliance with filing obligations and maintains strong current asset coverage of short-term liabilities, though operational sustainability remains unclear due to limited history. Further investigation into group funding arrangements and business prospects is recommended to fully assess investment risk.

UE 4 LTD - Analysis Report

Company Number: 14807059

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: MEDIUM
   Justification: UE 4 Ltd is a recently incorporated private limited company (April 2023) with active status and no overdue filings, indicating compliance. However, the financials show net liabilities (£900) and negative shareholders’ funds (£1,000), suggesting early stage operational losses or incomplete capitalisation. The high level of long-term creditors owed to group undertakings (£193,342) indicates reliance on related party funding rather than external financing, which may raise concerns about solvency and liquidity if intercompany support ceases.

2. Key Concerns:

   • Negative Net Assets and Shareholders' Funds: The company reports net liabilities and negative equity, which could indicate financial strain or undercapitalisation at this early stage.
   • High Related Party Debt: Amounts falling due after more than one year are significant and owed to group undertakings, increasing risk if intra-group support is withdrawn.
   • Limited Operational History: Being incorporated in 2023 with only one set of accounts filed limits visibility on performance trends, cash flow generation, and sustainability.

3. Positive Indicators:

   • Current Assets Cover Current Liabilities: The company has £193,922 in current assets against £1,480 current liabilities, yielding strong net current assets, which supports short-term liquidity.
   • Compliance and Governance: No overdue accounts or confirmation statements and appointment of a corporate secretary suggest good governance and regulatory compliance.
   • Clear Control Structure: Ownership is concentrated with Umbra Storage Limited (75-100%), Umbra Energy Limited (50-75%), and Rencore Limited (25-50%), providing a stable shareholder base with control over director appointments.

4. Due Diligence Notes:

   • Investigate the nature, terms, and repayment schedule of the £193,342 owed to group undertakings to assess solvency risks and potential contingent liabilities.
   • Review cash flow projections and funding plans to understand how the company intends to improve its negative equity position and ensure ongoing liquidity.
   • Ascertain the company's business model and revenue streams given SIC code 96090 ("Other service activities not elsewhere classified") is broad; understanding operational sustainability is critical.
   • Confirm whether the issued share capital of £100 is fully paid or partly unpaid (noting the accounts mention shares are unpaid at par), as this affects capital adequacy.
   • Review intercompany relationships and guarantees within the group that might affect risk exposure.